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by 10/12/2000 12:12 PM
Stocks quoted in this article:
Telecommunications equipment maker Redback Networks (RBAK – 100-3/4) announced on Wednesday that its second-quarter earnings came in at two cents per share, topping brokers' estimates calling for a two-cents-per-share setback. This morning, RBAK's "strong buy" and "buy" ratings were reiterated by two different brokerage houses.

The stock has reacted negatively to these developments, gapping 1-1/4 points lower at today's open. The equity is presently in the red by over 11 points, or just more than 10 percent, to reach its lowest intraday level since June 1. RBAK, which is trading back below its 10-month moving average, has declined by over 41 percent since its September 29 intraday high.

In the security's options pit this morning, the deep-out-of-the-money October 140 call is leading the way on volume of 745 contracts. This strike has open interest of 2,338 contracts, indicating that this activity could result in some liquidations.

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by 10/12/2000 11:20 AM
Stocks quoted in this article:
Amid yesterday's technology struggles, the PHLX Semiconductor Index (SOX – 721.17) registered its worst intraday mark since early January. In late-morning action, the index has muscled ahead by greater than 14 points, or just over two percent. This has the SOX poised to notch its first up day in the past six sessions. The index, though, remains beneath its 20-month moving average, our line of demarcation between a bull and bear market.

Top SOX performers so far today include Xilinx (XLNX – 68), up seven percent; Lattice Semiconductor (LSCC – 23-7/8), up 6.7 percent; Intel (INTC – 36-7/8), up 4.2 percent; and Advanced Micro Devices (AMD – 22-9/16), up 3.7 percent. AMD surpassed third-quarter earnings estimates by two cents per share and raised 2000 forecasts of processor shipments by three million units. INTC is scheduled to report fourth-quarter earnings next week.

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by 10/12/2000 10:16 AM
Stocks quoted in this article:
This morning, First Data (FDC – 43-3/8) revealed third-quarter earnings of 58 cents per share, which was five cents per share ahead of Street forecasts. It was this processor of credit card payment's sixth consecutive positive earnings surprise, according to I/B/E/S International. The company also raised its estimates for 2000 earnings to between $2.09 and $2.14 per share from an earlier prediction of $2.02 to $2.07 per share.

FDC gapped 2-5/16 points higher at this morning's opening bell in reaction to today's developments. Currently, the shares are in the black by greater than six percent to attain their top intraday mark since September 7. The equity is also approaching its descending 10-week moving average, which it has not finished a week above in nearly two months.

Information from Bloomberg shows that FDC is a favorite among analysts. All 14 brokers now covering the security rate it as a "buy" or better. If the stock is unable to carry over this morning's momentum, any downgrades could put downside pressure on the issue.


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by 10/12/2000 10:04 AM
Stocks quoted in this article:
This morning, KLA-Tencor (KLAC – 37-1/8) said that it earned 54 cents per share in its fiscal first quarter, topping Street estimates of 51 cents per share. The stock is getting a much-needed boost from this news and is up almost five percent in early trading. The equity has been losing ground since April, but its downtrend picked up speed recently. From a near-term high on September 1, the shares have dropped 42 percent.

Today's move takes KLAC above its 10-day moving average for the first time since September 5, but it remains well below its 20-day trendline located near the 42 area. The stock also notched its first monthly close below its 20-month moving average in September and continues to trend underneath this key long-term trendline.

Understandably, pessimism has been running high on this laggard. Schaeffer's put/call open interest ratio (SOIR) is near an annual high at 1.08. This means that put open interest has an eight-percent lead over call open interest for options expiring within the next three months. For more information on SOIR, please visit Schaeffer's Daily Sentiment. <
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by 10/12/2000 9:57 AM
Stocks quoted in this article:
Formerly owned by PepsiCo, Tricon Global Restaurants (YUM – 29-3/4) is the parent of Pizza Hut, KFC, and Taco Bell. The company is the second-largest fast-food corporation measured by sales, but it leads its chief rival, McDonald's, in terms of locations, with 30,000 restaurants in over 100 countries worldwide.

Last night after the close, YUM announced second-quarter earnings of 77 cents per share, topping the Street's expectations of 70 cents per share. This morning, the company's CEO says he sees a "very solid year" for the trio of restaurants in 2001, although same-store sales at the eateries for this year's fourth quarter will probably be flat or slightly negative. Additionally, YUM boosted the low end of its full-year earnings-per-share forecast from $2.90 to $2.95 per share.

The shares have been sideways-bound for the past nine months, oscillating between the 24 and 34 levels since January. This trendless motion has made the equity's moving averages fairly insignificant indicators. This morning, despite its positive earnings surprise, the security is trading modestly lower.<
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